Friday, June 15, 2007

Is it corn or is it oil?

The news has been awash with threats of rising milk, cereal, and meat costs. And the accused terrorist...corn. In fact, some say that milk in Florida will end up over $5 a gallon by September. Ouch.

An increased demand for ethanol has led to increasing demand for corn. This means less corn for the cows and kiddies. And, don't forget the staple of American food, corn syrup.

But, perhaps corn is just a quick throw away, accomplice to a much bigger and more formidable attacker: oil. We all know that oil prices are high, with prices staring us in the face on almost every street corner. It seems now we are staring to see some of the side effects of higher oil. It just may be that corn is only the tip of the iceberg.

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